The Global Lithium Resources Ltd (ASX: GL1) share price is flying high on Thursday.
In morning trade, the lithium developer's shares are up 12% to $2.40.
Why is the Global Lithium share price surging higher?
Investors have been bidding the Global Lithium share price higher today following the release of a promising announcement.
According to the release, the company has signed a memorandum of understanding (MOU) with leading Korean battery manufacturer SK On Co (SKO).
SKO is a supplier of batteries to global automakers, including Ford Motor Company, Hyundai Motor Company and Volkswagen. It had an order backlog of 1,600GWh at the end of 2021.
This MOU will see the two parties explore a range of future business opportunities, including the potential development of downstream integrated battery grade lithium assets for an initial two-year period.
In addition, the MOU will see SKO look at: supporting future Global Lithium capital raisings, potential investments, and offtake opportunities at the Marble Bar Lithium and/or the Manna Lithium projects.
Global Lithium's managing director, Ron Mitchell, commented:
I am extremely excited that Global Lithium has signed a MOU with Korea's SK On, a leading manufacturer of lithium-ion batteries for the automotive industry on a global scale. The scope of this partnership has the potential to strengthen and diversify the future of Global Lithium's projects in Western Australia both in the near term and in the years ahead.
Evaluating downstream processing partnerships is a significant part of GL1's step-change growth strategy and the company will continue to build on a range of advanced discussions around the globe. "The lithium and EV markets have experienced significant growth over the past two years and this expansion is only set to accelerate as demand for lithium-ion batteries increases. A partnership such as this will help position Global Lithium to be a key supplier of lithium to aid the continued sustainable development of the industry.
